House shift might aid 1099 overhaul

A Republican takeover of the U.S. House of Representatives could mean an overhaul of the hotly disputed 1099 issue in the federal health care reform law passed earlier this year.

Most experts agree Republicans, even with control over the House, won’t be able to fully repeal the Patient Protection and Affordable Care Act. But, it’s likely the GOP will try to overhaul certain provisions like the controversial 1099 mandate, which will require businesses to file 1099 reforms with the Internal Revenue Service any time they spend more than $600 a year on goods and services with any other business.

“You can probably expect little to happen Federally, at least in terms of large-scale efforts to repeal the [health care] legislation,” Brad Herring, a health policy professor at the Johns Hopkins Bloomberg School of Public Health, said.

The change, which is slated to take effect Jan. 1, is a significant expansion of the current 1099 requirement. Businesses are opposed to the change, saying it will cost them more time and money. Maryland businesses, with the backing of the Maryland Chamber of Commerce, are urging Congress to repeal this provision.

“Even Democrats agree that that provision was a bad idea,” said Ron Wineholt, vice president of government affairs at the Chamber. “We would look for some early action next year to repeal that provision in its entirely.”

That might just be more realistic with the new shift in power in Congress.

Many politicians on both sides of the aisle, including reelected U.S. Sen. Barbara Mikulski, D-Md., said they support at least changing the law to lessen the burden.

And with Republican Andy Harris knocking incumbent Democratic Rep. Frank Kratovil in the 1st District out of power, Maryland could be one of the national players that brings health care reform revisions to the table.